May has brought a significant dip in Swiss KOF Economic Barometer, which fell sharply from 96.1 to 90.2, a figure notably below the anticipated 95.3. This reading, barely above the cyclic trough of 89.3 recorded last November, indicates a continued deteriorating outlook for the Swiss economy for mid-2023.
In a statement, KOF noted, “This is the second time in a row that the barometer has fallen sharply. The outlook for the Swiss economy for the middle of 2023 is thus deteriorating further and remains at a below-average level.”
The sharp decline of the barometer, an important indicator of Switzerland’s economic health, is largely attributed to the manufacturing sector and financial and insurance services. Other economic sectors and foreign demand also contributed negative signals.
In contrast, “indicators covering private consumption are slightly positive,” providing a slight glimmer of optimism amid a broadly dimming economic forecast.
